Compute the interest coverage ratios for 2013 and 2014 from Dasbol Corporations partial income statements that follow.

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Compute the interest coverage ratios for 2013 and 2014 from Dasbol Corporation’s partial income statements that follow. (Round to one decimal place.) State whether the ratio improved or worsened over time.

2013 2014 $47,780 11,600 Income from operations Interest expense Income before income taxes Income taxes Net income $36,

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Principles of Accounting

ISBN: 978-1133626985

12th edition

Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson

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Question Posted: Mar 26, 2014 09:02 AM

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Compute the interest coverage ratios for 2013 and 2014 from Dasbol Corporations partial income statements that follow.

Question:

2013 2014 $47,780 11,600 Income from operations Interest expense Income before income taxes Income taxes Net income $36,920 6,600 $30,320 9,000 $36,180 10,800 $25,380 $21,320

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Rounded The interest coverage ratio declined from 2013 to 2014 from 56 ...View the full answer

Principles of Accounting

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